The formula to double e-commerce revenue

Most online stores focus solely on driving more traffic to their websites. Buying more paid traffic is the most expensive way to grow your online store. Don't get fixated on that, because there are three other growth factors that are equally important.

If you increase these growth levers by 30%, you can double your revenue. Yes, seriously! This isn't magic, but the fundamental components of online store revenue.

Let me explain with this calculation example:

The competitor wins in this example against the e-commerce brand. This is due to the following components:

• The competitor's conversion rate is higher due to the use of discounts.
• The AOV is lower because of the 10% discount being offered here.
• Bargain hunters are less loyal. The competitor's customers don't return (F = 1).
• The competitor's traffic is slightly higher than the brand's because the competitor can buy more paid traffic.

This is a situation we see much more often with our clients. Polaris Growth helps e-commerce brands beat the competition by making incremental improvements across all growth factors. Let me show you how that works.

Increasing conversion

In this example, we increase the conversion rate by 30% (from 1% to 1.3%). You can see that this raises the revenue to €292,500. The competitor still 'wins' with a higher revenue. webshop optimization services or read the tips to increase conversion.

Increasing average order value

The second growth lever that Polaris Growth works on is the average order value (AOV). Read our tips for increasing your AOV. With the second 30% growth, we now have slightly more revenue than the competitor! But we’re not there yet; the secret weapon is frequency.

Increasing purchase frequency

The final step—and the most powerful one—is increasing purchase frequency. Retention and loyalty are incredibly important, especially as paid traffic (Google, Facebook, Instagram) becomes increasingly expensive. The reason is that your competition is also leveraging growth levers and daring to spend more.
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3x 30% yields more than 1x 100%

3x 30% equals 90%, right? Correct, but this involves compound interest. The improvements reinforce each other, leading to exponential growth. This way, you arrive at 120% growth (which means your revenue multiplies by 2.2).

Curious about how to get started? Schedule a non-binding conversation or sign up for the 2x growth e-mail course. In that course, I’ll explain how to achieve growth using the three growth levers.

Goal Tree model with all the 'levers' to pull

At Polaris Growth, we use the Goal Tree model to achieve e-commerce growth. This model was developed by Optimizely—a A/B testing software.

Why this often doesn’t succeed

All the entrepreneurs we talk to have the ambition to grow. But why is it so difficult to achieve growth? Here are the 5 biggest causes that hinder your growth and what you can do about it as an e-commerce entrepreneur.